Brown & Brown reports record first-quarter net incomeof 22 percent over the previous period primarily on the increase incommissions and fees, as insurers press for rate increases, withsignificant focus on the Superstorm Sandy-affectedregions.

The Daytona Beach, Fla.-based insurance broker says Q1 netincome was up $11 million to $60 million on revenues of $335million, an increase of 11 percent, or $33 million.

“This is the most net income we have ever earned in the firstquarter,” says Chief Financial Officer Cory T. Walker during aconference call with analysts.

Executives note positive trends in all its business segments,underscored by the firm's organic growth up by 10 percent.

President and CEO J. Powell Brown, discussing the insurancemarket in general, says rates overall are on the upswing throughoutthe U.S., increasing in some cases from flat to mid-single digitsdepending upon the perception of risk among carriers. In a fewmarkets carriers are seeking rate hikes as high as 10 percent.

Focusing on the New Jersey, New York and Long Island area,Powell says carriers are making the most underwriting changes oncommercial property accounts with attempts at increases as high as8 percent. He says capacity on wind risk is tightening throughoutthe region, and coastal areas within five to eight miles of thecoast have seen their wind deductibles go from flat rates to 2percent increases.

Flood deductibles have doubled and some standard market carriersare non-renewing, pushing property risks into the Excess andSurplus lines market, says Powell. E&S carriers are increasingprices by 10 percent or more on habitation, along with changes interms and conditions. Some insurers are not insuring wood framestructures and are cutting flood limits or increasing pricessubstantially.

“It's a brave new world” for E&S carriers in the New Yorkand New Jersey area, says Brown.